Can You Legally Write Off Your Debt?

If you're like most people today you've probably got over £10,000 of unsecured debt. Whether it be a credit cards or loan they all add up and if you pay the minimum repayments each month it can feel like its going to take forever to pay them off.

There are a few options which can help you pay them off faster in the form of a Debt Management Plan, IVA or Trust Deed. With most of these options you can freeze interest and Charges and get one lower payment each month until the balance is cleared. The downside to this is your credit rating will be affected though and you may struggle to gain credit in the near future.

There is another alternative. Write off the entire balance in full... read on....

The 1974 Consumer Credit Act

The '1974 Consumer Credit Act' is in place to regulate unsecured lending below the value of £25,000. This was amended in 2006 by the government and almost immediately solicitors and lawyers spotted a clause in the amendment which would allow a debt to written off if the debt was taken out before April 2007. This means if you have a credit card or loan which was taken out before this date it can be challenged in a court of law and there is a possibility you could get the entire balance legally written off. This is also referred to as being 'Unenforceable' or an 'Unenforceable Loan Agreement'

What is an 'Unenforceable Loan Agreement'?

An 'Unenforceable Loan Agreement' basically means you are using the law to prove that the contract you signed with your credit card or loan company does not comply with the '2006 Consumer Credit Act amendment' and is therefore not legal. (Some like to refer to this as a 'legal loophole'). Therefore, if it is not legal so it cannot be enforced and the court can order the lending company to write the entire balance off in full.

Is this a scam?

A lot of people refer to this as a scam or a con as it seems too good to be true but if you keep in mind the act has been put in place to protect consumers then you are simply using the law as it is meant to be used.

Who can do this for me?

The process can be done by yourself by writing to the lending company directly, although as most of us are not solicitors and do not know the full extent of the law and how to use it to our advantage, so it is probably best to use someone who has experience in this field. There are a lot of legal and non legal firms out there offering this service. Knowing how professional they are is another matter. Some firms will charge upfront fees to see if you agreement fits the 'Unenforceable' criteria, others will charge a fee on completion of the deal. Some will do a discount if you have more than one debt you want written off. Either way there will be a cost involved but it will more than pay for itself if you are going to have the entire balance written off in full.

Do I qualify to write off debt?

For more information on how debt write off works, to see if you qualify and to find the right company to help you use our Free Write Off Debt Calculator and get on the road to a debt free future!

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